Use a Mortgage Calculator Effectively with These Tips from the Title Insurance Professionals in Perry Heights

Mortgages can be life savers if you have the ;dream of becoming a homeowner. However, you need to make a financial plan and figure out how much you will need to pay on a monthly basis to cover that loan in the next few years. To help you out in this department, we here at ;Patriot Title Agency, Inc., have a Mortgage Calculator ;and we'll teach you how to use it in the post below!

How to Use the Mortgage Calculator in Our Website

The First Section

Once you have clicked this link, you'll be transported to the Mortgage Calculator in our website. When you open the page, you'll see that there are 7 different labels. The following paragraphs will go over the first 4 labels ("Home Price", "Down Payment", "Annual Interest Rate", and "Number of Years"), as these are the fields that you need to fill with your own information.

The Home Price

First and foremost, there's the home price. It is such an important number, that you probably negotiated with the seller to come to it. As you can imagine, this basically refers to how much money you agreed to pay for the estate you're interested in. Let's exercise our imaginations and say you're looking at a property with a $350,000 home price. Enter that information in the website.

The Down Payment

As for the "Down Payment" field, establish how much money you will pay upfront for the property. More often than not, this money comes from your own pocket and it's paid in cash. Also, ensure that it represents at least 20% of the home price to avoid mortgage insurance. If you buy ;a $350,000 home, the down payment would be $70,000.

The Annual Interest Rate

The annual interest rate, as the name states, has to do with how much ;your loan will cost you on a yearly basis. This depends on a number of factors (such as the number of years, and the agreement reached with the loan officer). ;To continue with the example above, let's say that your annual interest rate will be 7%.

The Number of Years

This one is pretty straightforward: in the "Number of Years", you need to input how many years you have to pay off your mortgage. Again, this will depend on what you worked out with your lender. In most cases, loan officers will give you between 15-30 years. In this example, we'll say that you have 25 years to settle your debt.

The Second Section

Now, we've reached the second section in the Mortgage Calculator page. Unlike the first section, here the information will be given to you (i.e. you don't have to enter any more of your data). Nonetheless, in the following paragraphs, we'll go over what each of these labels mean and how they're calculated, so you can have a better understanding of them.

The Loan Amount

This number is generated automatically through a simple subtraction and it represents how big your loan has to be so you can ;buy the house. For that reason, you need to consider the "Home Price" ($350,000 ) and take out the "Down Payment" ($70,000). In this case, your "Loan Amount" would be of $280,000. As you can see, acquiring a property is no small feat: it is a big investment both in time and money. That's why, if you want to keep your investment protected, you should turn to ;Patriot Title Agency, Inc. ;to buy title insurance in Perry Heights. ;Call ;330-479-3000 for more information on their services, and how they can assist you in your real estate transactions.

The Number of Payments

The "Number of Payments" indicates how many monthly payments you need to make in order to pay your mortgage completely. To reach this number, you ;multiply ;the "Number of Years" (in this case, 25 years) and 12 (which represents the number of months in a year). The "Number of Monthly Payments" to be made in this scenario is 300.

The Monthly Principal and Interest

Now this is the magic number: it stands for how much money you will need to pay on a monthly basis in order to pay your mortgage (depending on the "Loan Amount", the "Number of Years", the "Annual Interest Rate", and the other factors discussed above). To finalize the example we've been working on in this post, to pay off a $280,000 loan, over 25 years, with an annual interest rate of 7%, you will have to make 300 payments of $1,978.98.

Trust in Patriot Title Agency, Inc. if You Require Title Insurance in Perry Heights

Certain irregularities in a property's title can put your whole investment and claim on the estate at risk. That's why, if you'll be entering a real estate transaction, you should contact ;Patriot Title Agency, Inc. in Perry Heights ;at ;330-479-3000. They'll lend their expertise, as well as provide ;title insurance in Perry Heights, so you can have a safe closing.